Florida Attorney General James Uthmeier released 600 pages of emails and drafts regarding the $67 million settlement between Florida and the state’s largest Medicaid provider, Centene, to Politico before giving them to State Rep. Alex Andrade, who requested them in April.
- The settlement was negotiated to settle overbilling claims levied against a now-former pharmacy benefit manager. However, the final drafts of the settlement included a $10 million donation to the Hope Florida Foundation, the nonprofit fundraising arm of First Lady Casey DeSantis’ Hope Florida initiative. The funds were momentarily parked with the Foundation and funneled through two other nonprofits to fund the campaign to defeat a recreational marijuana amendment last November.
According to Politico article:
Settlement Structure and Amount:
- Centene’s attorneys claimed the settlement amount was more than three times the actual financial loss to the state
- Mississippi lawyer Matthew C. McDonald wrote that Florida was “receiving 3.4 times more than the most aggressive actual damages calculation”
- McDonald noted that pursuing actual litigation based on the Ohio conduct would have resulted in “far less than is being offered as part of this settlement.”
- Breakdown according to Centene’s letters:
- $19.4 million to cover actual state losses
- $36.8 million in profits collected by Centene’s former pharmacy benefit manager
- $10.8 million for additional losses/costs – $10 million was directed to the Hope Florida Foundation
- Both sides agreed to cover their own legal costs
Key officials and their roles:
-
Chief Deputy Attorney General John Guard:
- Signed off on the finalized settlement in September
- Removed the attorney general’s office as the designated recipient of settlement funds because they involved Medicaid
- Determined the funds should instead be managed by the Agency for Health Care Administration (AHCA)
- Wrote in a September 13 email to Andrew Sheeran (AHCA’s top legal advisor): “Normally, the federal share is explicitly detailed in the settlement agreement, and I am not sure AHCA wants us to get the remainder of the money. If it is just going to the Legislature and [general revenue], I can probably make it work, but I believe this is different than I have seen in a settlement with Medicaid monies.”
- Previously prosecuted cases for the attorney general’s Medicaid Loss Control Unit
- Currently awaiting Senate confirmation after being nominated by President Trump to become a federal judge
Settlement process:
- Finalized in September after extensive confidential negotiations
- Documents classified as “trade secret” requiring Centene’s consent for release
- Months of discussions preceded the confidential draft’s public availability
Stonewalling the Florida House
Pensacola lawmaker Alex Andrade has served as the lead investigator in the Florida House’s review of the Hope Florida Foundation and the $10 million diversion from a Medicaid settlement to the foundation and then to nonprofits that donated millions to political committees.
Background: Andrade, chairing the House Health Care Budget Committee, conducted hearings, compiled evidence including emails and financial records, and ultimately referred his findings to federal and local law enforcement, stating he would “leave the rest of the inquiry to the FBI and Department of Justice.” He publicly alleged that the transaction chain constituted “conspiracy to commit money laundering and wire fraud” and specifically accused Florida’s Attorney General and other high-ranking officials of involvement in fraud and money laundering related to these transfers.
- When Politico published its article, Andrade posted on X: “In April, I called John Guard and asked for these public records. He acknowledged the request, but I’ve never heard back since. It’s shocking to read that @AGJamesUthmeier ‘s office would trade on public records like they were some commodity, rather than follow the law.”
Last week, Politico reporter Arek Sarkissian contacted Andrade:
Hi Chair, I’m about to send you one of several emails and settlement drafts I received “exclusively” by the AG’s office. I received about 300 pages of records on Friday. I was told by Redfern (AG Communications Director Jeremy Redfern) they show the $57 million part of the settlement was more than three times the size of the state’s actual financial loss.
They also show the $10.8 million came with no strings attached.
Why now? Redfern said the settlement drafts and emails were previously tied up under client attorney privilege claims, and it required agreements from Centene and Liston and Dees.
I’m searching for a way to scan the records since they provided them as hard copies. But based on this email, and my rough summary, I’m wondering if you think this signals something else.
- I have scheduled a podcast interview with Rep. Alex Andrade this afternoon and will post it tonight.
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